Introduction
At the 52nd Induction Ceremony of the Chartered Institute of Taxation of Nigeria (CITN)—held for the first time in Abuja—the Institute formally endorsed a key provision of the Economic Stabilization Bill (“the Bill”). The Bill, which has passed the House of Representatives and is awaiting Senate concurrence, proposes the introduction of tax agents as authorized intermediaries between taxpayers and revenue/tax authorities—a significant policy shift intended to streamline tax collection, boost compliance, and enhance Nigeria’s fiscal efficiency.
CITN’s endorsement signals strong professional support for a more structured, transparent, and accountable tax administration system.
Key Highlights of the Reform
- Introduction of Tax Agents: Tax agents will serve as authorized intermediaries, assisting taxpayers with compliance processes and interacting with tax authorities on their behalf.
- Professional Certification Requirement: Only certified tax professionals will be permitted to operate as tax agents, ensuring credibility, professionalism, and higher service standards.
- Potential Simplification of Compliance Processes: The intermediary model is expected to reduce direct taxpayer-authority interactions, promote efficiency, and build greater trust in the tax system.
Implications for Stakeholders
- Taxpayers: Engaging certified intermediaries may simplify compliance and improve transparency. However, taxpayers should remain vigilant in selecting qualified agents and be mindful that the use of intermediaries may introduce additional costs.
- Businesses and Corporates: Companies may need to revise their tax compliance structures and third-party engagement policies to reflect the operational role of tax agents in their compliance processes.
- Government Ministries, Departments, and Agencies (MDAs): Integrating certified tax professionals into MDAs aligns with global best practices and could enhance efficiency and credibility in public revenue administration.
- Legal and Tax Advisory Firms: The reforms present new opportunities for advisory firms to expand into intermediary tax services, compliance audits, training services, and litigation support related to taxpayer representation. It is expected to strengthen the value of professional certifications (such as CITN and ICAN memberships) and expand demand for tax services, particularly among small and medium-sized enterprises (SMEs) and participants in the informal sector.
Way Forward with SimmonsCooper Partners
The proposed introduction of tax agents has the potential to foster improved engagement between taxpayers and the tax agencies. Nevertheless, the success of this initiative will depend heavily on the establishment of clear legal frameworks, ethical safeguards, and effective monitoring mechanisms.
As Nigeria continues to recalibrate its tax administration model, businesses and stakeholders must prepare to adapt with vigilance, professionalism, and strategic foresight. For advisory on tax policy reform, compliance strategies, or readiness assessments under the evolving framework, contact us at info@scp-law.com or visit www.scp-law.com.
